LONDON: Adani Group Forays Into Digital Space, To Buy ‘Significant’ Minority Stake In Cleartrip

LONDON: Adani Enterprises announced recently that it has acquired a ‘significant’ minority stake in Cleartrip Private Limited – an online travel aggregator (OTA) which is part of the Flipkart Group. As a part of the investment, Cleartrip will serve as Adani Group’s OTA partner.

This
happens to be Adani Group’s first investment in the digital space. At a time
when the country witnesses a resurgence in air travel, resulting in an increase
of flight bookings, the investment is said to ‘deepen’ the strategic
partnership between the leading e-commerce platform and the Adani Group.

The Adani
Group operates seven airports in the country, holding immense exposure in the
airport infrastructure sector. Moreover, since the acquisition by the Flipkart
Group, Cleartrip has witnessed a 10 times growth in flight bookings.

The
companies are likely to benefit from synergies in the travel and tourism space
and believe that the partnership will further boost digital reach and
accessibility.

“….we
have a strongly developing relationship with Flipkart that spans multiple
dimensions including data centres, fulfilment centres and now air travel. The
firms believe this alliance will create local jobs, reiterate the idea of
Atmanirbhar Bharat and give a platform for a broader ‘SuperApp’ journey,” said
Mr Gautam Adani, Chairman, Adani Group.

Earlier
this year, Flipkart announced a 100 per cent acquisition of Cleartrip’s
shareholding as it sought to raise investments to strengthen its digital
commerce offerings for customers.

By
collaborating with the Adani Group in areas such as travel-related products,
loyalty programs and other value-added services, Flipkart-owned Cleartrip aims
to provide a seamless travel experience to customers and accelerate its growth.

“….we
strive to strengthen our relationship with the Adani Group and will explore
ways in which we can expand our offerings for consumers,” noted Mr Kalyan
Krishnamurthy, Chief Executive Officer (CEO). Flipkart.

The deal
is expected to close in November 2021, subject to customary closing conditions.
On Friday, October 29, shares of Adani Enterprises settled 2.19 per cent higher
at ₹ 1,423.50 apiece on the BSE.